Outbound cruise vacations for India on a growth trajectory

According to a study by the Union Ministry of Tourism (MoT), it is estimated that by 2030-31, India will have 1.2 million cruise tourists. Outbound cruising from India, which is increasing by 30-35% annually, is gaining momentum with a mix of Indian cuisine, halts at prime destinations, and a range of entertainment options offered by cruise lines. Akansha Pandey tracks the potential and growth of Cruise Tourism in India

The World Travel & Tourism Council (WTTC)
had projected that India’s travel and
tourism industry will grow much beyond
expectation in South East Asia and the world
aggregate level. And the same stands true today.
With a number of fun activities, entertainment
options, and exceptional holiday vacation value,
it is not surprising that the popularity of cruise
holidays in India is constantly increasing.

According to travel agents, over the years
queries for cruise vacations from India have seen
a rise from 5 per cent to 30 per cent. The Indian
customer’s mindset is more evolved today and he
is aware of the options available before booking a
cruise holiday with a travel agent. Looking beyond
Hong Kong and Singapore, travellers have shifted
their focus to Bahamas, Caribbean, Alaska, Europe
(including Scandinavia and Mediterranean),
Greece, USA, Mexico and Dubai on a three-toseven-
night cruise journey.

International cruise lines have realised the
potential of the Indian market and have started
offering several Indian cuisines such as Jain and
Gujarati food onboard. This has undoubtedly
increased the customer satisfaction level to over 95
per cent.

Industry View Cruise Tourism is witnessing double digit growth
the world over and this also includes River Tourism,
which is a niche segment, said Karan Anand, Head-
Relationships, Cox & Kings Ltd. “Today cruise
liners are wooing younger travellers with a number
of activities such as casinos, top notch food outlets,
indoor golf, better entertainment and more relaxed
approach to cruising,” he added. The number of
Indians who cruise every year is still about a lakh
as compared to the size of the outbound market,
which is over 14 million per year. This indicates
that there is a huge potential and it is up to the
cruise liners to customise their products to suit
Indian tastes. The Indian traveller views cruising
as an extension of a land holiday and do not
specifically opt for a cruise-only vacation. “They
prefer three- to four-night itineraries. However,
there is a segment that is now opting for longer
vacations and also preferring river cruises,” he
stated.

The Indian cruise market is growing at
approximately 30 per cent year-on-year and the
total potential of the cruise market from India is
close to 1.25 lakh per year. Neelu Singh, COO,
Ezeego1.com, highlighted the need to create
awareness about cruise vacations, considering
it has huge growth potential. “We have noticed
that the trend amongst the Indian customers is to
include a few days of cruising as part of a larger
holiday. Several cruise companies such as Costa
Cruises and Star Cruises have introduced elements
of Bollywood and Indian cuisine which signify that
India is an important market for Cruise Tourism,”
she stated.

Thomas Cook India is witnessing an impressive
growth rate of over 35 per cent for cruise bookings.
Interestingly, the destination spread covers the
volume-based Far East destinations, luxurious
Scandinavian and Mediterranean cruises to
Alaska, Caribbean, and also the exciting icebreaker
Antarctic cruises. Shibani Phadkar, Senior
Vice President-Products & Operations, Leisure
Travel (Outbound), Thomas Cook (India) Ltd., said,
“Cruises offer great allure and we add value to our
itineraries with ‘all-inclusive’ cruise packages. We
have seen significant uptake in demand for cruises
from India’s young travellers, between the age group
of 18 and 35 years. The introduction of newer and
larger cruise ships with top notch entertainment
facilities also ensures that the cruise segment will
continue to see significant growth.”

Phadkar feels that factors such as social media,
word of mouth, more affordable packages, ease of
access and most importantly the ‘brag factor’ have
been instrumental in driving the segment into one
of the largest growing industries.

Vinita Warrier, Team Leader, Free Independent
Traveller (FIT) International, Akbar Holidays,
revealed that the representation of outbound cruise
companies in India has increased significantly.
“Offering an average of ten per cent commission
to travel agents booking cruise trips, the cruise
representation brands in India are also leaving no
stone unturned to train and educate the front line
staff. Apart from showing cruising videos, availing
brochures and organising training workshops, they
are taking agents on a familiarisation trip from
time to time,” Warrier shared.

MICE Activities & Weddings OnboardThe MICE segment in India is opting for cruise
holidays considering Costa Cruises, RCL, and Virgo
are now cruising from Asian shores. “Companies
often opt for shorter sailing trips of two to three
nights to incentivise employees. Wedding is another
segment that has tremendous potential, especially
amongst HNI clients. We also see a lot of young
crowd turning towards cruising as a preferred
holiday with a two night/three day package within
Asian countries,” said Singh.

MICE and wedding planners also prefer cruise
travel as the packages are all inclusive and can be
tailor-made as per the travellers’ requirements,
commented Anand.

Today, the MICE market is becoming
increasingly sophisticated with discerning palates
and evolving preferences and interests, stated
Phadkar. “Cruises with their range of price points
offer value across a variety of MICE tiers from
budget to super deluxe. Gala events and team
bonding activities can be personalised with help
from the Event Manager aboard a cruise ship and
this is a big plus point.”

Cruise Representation in India
Throwing light on the response from the India
market in 2014, Nishith Saxena, Founder &
Director, Cruise Professionals (representing
Cunard, Princess Cruises, P&O Cruises - Australia
and P&O Cruises - United Kingdom) elaborated
that they are highly satisfied and the business
in 2014 was good. “In terms of the overwhelming
support Princess Cruises has received from the
travel agents as well as the passengers, 2014 was
no different,” Saxena stated. Their marketing
campaign ‘Balcony Bonanza’, ‘Cruise Becho
Duniya Dekho’ and ‘Monsoon Mania’ created
excitement among the target audience and in turn
resulted in good sales. On service delivery front,
their passengers were offered enhanced choice of
itineraries, Indian meals served onboard and a
collection of entertainment services.

From India, the most popular routes for Cruise
Professionals are South Asian cruises because
of their close proximity, Alaska and Norwegian
Fjords for their natural beauty, British Isles and
Mediterranean for their cultural and architectural
offerings, Bahamas, Caribbean and Mexico for their
beaches and fun activities, and Japan, Russia and
South American belt for their uniqueness, Saxena
revealed.

"Cruise Tourism has been termed as one of
the most potential and sustainable segments once
we reach an assumed status with regard to the
passenger numbers and ship deployments," said
Saxena. But till date, there are only a handful
of people who have actively pursued this line of
business and a large percentage of travel agencies
still remain aloof from the benefits of this business.
Outbound cruising was introduced in India nearly
20 years ago, and till date, less than ten per cent
of travel agents sell cruises on a year round basis
in India. “In the current scenario, you will find
travel agencies fighting for an extremely small
percentage of the airline commission, but they
will not promote cruising, which could give them
ten per cent commission or even more,” Saxena
lamented.

During January to September 2014, Royal
Caribbean Cruises witnessed 15 per cent growth
in bookings in the Indian market. The cruise
line witnessed tremendous growth from Asia last
year by welcoming year-round deployment from
Singapore and a six-month deployment from Hong
Kong. Further, in 2014 Royal Caribbean Cruises
had reduced deployment in the Mediterranean and
welcomed Allure of the Seas, the largest cruise ship
in the world sailing from Barcelona.

Communicating with a diverse land such as
India has always been an interesting exercise,
exclaimed Ratna Chadha, CEO, TIRUN Travel
Marketing, India Representative of Royal
Caribbean International, said that the travel trade
needs to look beyond air tickets and hotels. In
fact, the cruise product is the easiest to sell off-the
shelf, given it is inclusive and managed by a single
entity that ensures greater standards of delivery.
“On our part we have successfully marketed the
concept of cruise vacations via various mediums
including direct marketing, print and electronic
advertising, social media, trade programmes, etc.
We believe in innovation through newer mediums
and technologies, as well as interesting campaigns
to reach out to consumers,” added Chadha.

Chadha said that India holds great potential
for Cruise Tourism. Indians are increasingly open
to trying newer itineraries for destinations such
as Alaska, Scandinavia, South America. Popular
destinations amongst Indians are Europe, especially
the Mediterranean, Alaska and Bahamas, Chadha
elaborated.

Cruises from Singapore and Malaysia have
been an absolute delight amongst the guests of
Star Cruises, but slowly the brand is witnessing
a rise in travellers opting for newer sailings from
Kota Kinabalu and Hong Kong. The response from
the Indian market has always been overwhelming
and very encouraging ever since we have started
promoting cruising as a holiday option, claimed
Naresh Rawal, Vice President-Sales, Star Cruises,
India.

Currently promoting Bollywood Cruise Night on
SuperStar Gemini, Rawal feels that cruising in India
is gaining popularity. Outbound Cruise Tourism
from India has been growing at a steady pace year
on year. The Indian traveller has now evolved from
a two-night itinerary and is now choosing three-,
five- and seven-night itineraries. “Besides, while
travellers were earlier choosing inside staterooms,
now we are witnessing a higher demand for balcony
cabins. Demand for shore excursion packages,
honeymoon packages and birthday packages are
also on the rise,” Rawal stated.

Sumit Banerji, Founder & Country Man,
India and South Asia, Cruise Masters (General
Sales Agent, Regent Seven Seas Cruises) shared
that they had witnessed an impressive business
growth in 2014, considering the fact that the
brand introduced Regent Seven Seas Cruises
in the market just three years ago. Their luxury
cruise vacation has been well-accepted by high networth
travellers from India, who are considering
celebrating their special occasion either as a couple
or with their family members and friends. In fact,
inquiries on family get-togethers too have seen an
upswing, primarily due to their ‘all-inclusive allsuite
accommodation’ product positioning.

Voyage itineraries covering Europe
(Mediterranean and Northern Europe) and Alaska
lead the demand chart. “Clients appreciate our
itinerary plans that offer overnight stops at
port-of-calls and at disembarking cities. This
provides them with the choice of exploring the
destinations’ evening entertainments, sightseeing,
and nightlife. As guests can experience unlimited
shore excursions at any port-of-call and that too
being all-inclusive in our cruise fare, adds on to the
appeal for such vacation. Many of our itineraries
are not repeated in an annual calendar, thus
offering multiple unique voyage options to choose
from,” exclaimed Banerji.

The response received from key markets,
including Mumbai, Delhi, Bengaluru, and
Hyderabad for SeaDream is growing slowly, but
consistently, agreed Sudesh Kishore, President,
SeaDream Yacht Club, India and Corporate Chef,
SeaDream Yacht Club. During SeaDream's maiden
visit to Asia in 2013 via Mumbai, select travel
trade from Goa and Kochi and high-profile clients
were invited to hop onboard and experience the
luxury first hand. The brand is encouraged by their
feedback on the cuisine and the services, besides
developing strategic alliances with corporate
clientele. Kishore added, “These alliances have
been formed on the basis of commonalities of the
target audience and brand values. As part of our
strategic plan, we will continue to focus on this
avenue and are confident on building on this
platform that we have already created.”

India has shown an acceptance to cruise
vacations. Though the cruising industry in India
is at a nascent stage, it is growing steadily. The
annual year-on-year growth is at an average of
15 to 18 per cent per annum with almost 70,000
individuals taking a cruise vacation annually,
Kishore informed. Indians prefer Mediterranean
voyages during summer, given the suitable climatic
conditions and exotic destinations covered through
the itineraries of SeaDream.

“Currently our marketing effort is focused on
strategic media relations and co-branding
opportunities with right partners. Given the
product positioning, our efforts also include
educating the travel trade and high-net worth
clients about the difference between yachting and
cruising,” Kishore added